In the past decade, fintech has shaken up the financial sector in Latin America providing innovations in lending, payments, insurance, and regulation and compliance. This report examines this development by focusing on both fintech services and regulation. Exploring fintech’s macro-critical impact using country- and bank-level data, this report finds that booming financial technologies in Latin America have helped boost competition in the banking sector and inclusion. Additionally, fintech firms in Latin America experienced robust growth even during the pandemic supported by external funding. Finally, this report discusses how regulators are addressing the risks associated with financial technologies and how they are leveraging fintech tools in their supervisory activities. Beijing FIRSTnow excerpts the main contents of this report for reference.
